Ual Seals $587 Million Cash Takeover Of Hertz

UAL Inc., parent company of United Airlines, has completed its acquisition of Hertz Corp. for $587.5 million in cash.

The acquisition from RCA Corp. gives Chicago-based UAL control of the nation`s largest airline and car-rental chain, along with its major hotel chain, Westin Hotels.

Hertz, based in New York, holds 35 percent of the U.S. car-rental business, operates a fleet of nearly 400,000 vehicles from more than 4,500 offices worldwide and employs 30,000. Last year, the company posted pretax profit of $50 million on sales of $1.44 billion and in 1983, $68 million on $1.37 billion.

UAL completed the Hertz deal after winning government and regulatory approval, and the consent of the RCA board. UAL`s board had already approved the acquisition when the company announced the deal in June, three days after settling a 29-day pilot strike at United.

A UAL spokesman said the company does not plan to make changes in Hertz management or to cut employment. Frank Olson will continue as the wholly owned subsidiary`s chairman and chief executive officer.

UAL has said four out of every five car rentals are made in connection with an airline trip, providing what it called a ``natural fit`` between Hertz and United. The combination will also allow ``economies of scale`` in administrative costs for both businesses, the UAL spokesman said.

The sale allows New York-based RCA to concentrate on its electronics, communications and entertainment businesses.

In another development, the UAL spokesman said the company expects to complete its $750 million acquisition of Pan American World Airways` Pacific routes by the first quarter of 1986. The purchase still needs the approval of the U.S. Department of Transportation, President Reagan and a number of foreign governments, he said.